As RMG fades, India's gaming ad market to cross $500 million by 2029: Report

India's mobile gaming industry is entering a new growth phase, with the non-real money gaming (non-RMG) market projected to more than double to $2.4 billion by 2029, as regulatory changes reshape the country's gaming landscape and redirect both consumer spending and investor capital toward traditional mobile games.

According to India's State of Play 2026, a report authored by Naavik for MIXI and powered by Sensor Tower with support from AppsFlyer and Google, India's non-RMG mobile gaming market generated approximately $1.1 billion in combined in-app purchase (IAP) and advertising revenue in 2025. The report expects revenues to climb to $1.5 billion in 2026, representing nearly 35% year-on-year growth, before reaching $2.4 billion by 2029, implying a compound annual growth rate of about 17%.

The report argues that the biggest catalyst behind this acceleration is the regulatory overhaul of India's real money gaming (RMG) industry in 2025.

The Promotion and Regulation of Online Gaming Act (PROGA), introduced last year, effectively prohibited online money games involving real-money stakes, irrespective of whether they were games of skill or chance. Before the legislation, India's RMG industry was estimated at $3.7 billion, accounting for nearly 85% of the country's gaming revenues, supporting around 200,000 jobs and generating approximately $2.3 billion in tax revenues, the report noted.

While the legislation has disrupted India's RMG ecosystem and remains under judicial review, researchers believe the unintended consequence is a rapid expansion opportunity for the broader gaming industry.

The report says capital, talent and consumer attention are increasingly moving towards free-to-play mobile games, particularly midcore titles built around in-app purchases instead of betting mechanics.

"Fresh capital injections and an available pool of highly skilled talent will unlock significant growth opportunities for the gaming category," the report says, adding that non-RMG gaming now benefits from stronger government support and significantly lower regulatory uncertainty.

India remains the world's largest gaming audience by volume

The report estimates India now has over 600 million active gamers, making it one of the world's largest gaming audiences after China. The player base expanded around 9% year-on-year during 2025.

India also remains the global leader in mobile game downloads, recording 7.95 billion installs during the year, significantly ahead of Indonesia's 2.9 billion downloads.

Despite its enormous scale, monetisation continues to lag mature gaming markets. India's mobile gaming market generated approximately $800 million in in-app purchase revenues during 2025, ranking sixth in Asia-Pacific despite leading the region in downloads and time spent playing.

Researchers attribute this to India's price-sensitive consumer base and continued dominance of free-to-play gaming supported by advertising rather than direct spending.

Advertising continues to contribute more than one-third of industry revenues, generating an estimated $300 million in 2025, while rising smartphone penetration, expanding digital payment infrastructure and increasing disposable incomes are expected to gradually improve monetisation over the coming years.

Strategy games emerge as biggest winners after RMG ban

The report identifies one of the clearest behavioural shifts following the RMG crackdown.

Early data from the four months after the regulations suggests gamers previously engaged with real-money formats are increasingly migrating toward strategy games, which demand long-term planning and competitive thinking similar to fantasy sports, poker and rummy.

Modern 4X strategy titles posted some of the fastest revenue growth during the period, with games such as Kingshot, Last Z and Clash Royale recording significant gains.

Simulation titles have also benefited from the shift, while puzzle games witnessed increased user engagement as former RMG players explored alternative gaming experiences.

Researchers believe these trends support their forecast that in-app purchase revenues will accelerate significantly during 2026 as former RMG users redirect spending toward traditional games.

Battle royale continues to dominate revenues

While casual games continue to account for the largest download volumes, the report finds that India's revenue pool remains heavily concentrated in competitive multiplayer titles.

Shooter games generated 43% of India's in-app purchase revenues during 2025, with battle royale titles such as Free Fire MAX and Battlegrounds Mobile India accounting for nearly 94% of shooter revenues.

The report notes that these games have maintained leadership by investing heavily in localisation, including India-specific live events, esports tournaments, Bollywood partnerships and region-specific content updates.

Meanwhile, culturally rooted games continue to dominate download rankings. Titles such as Ludo King, Cricket League and Carrom Pool continue to outperform many global franchises by adapting familiar Indian games and sports for mobile audiences.

Roblox and Indian developers signal ecosystem maturity

Beyond established publishers, the report highlights the rapid growth of Roblox in India, driven by Hindi localisation, regional pricing and growing creator adoption.

Researchers say this is paving the way for an ecosystem of Indian user-generated content (UGC) studios and specialised development partners.

More broadly, India's game development ecosystem now includes over 2,000 companies employing approximately 130,000 professionals, with the potential to create 2 million gaming-related jobs by 2034.

Government initiatives focused on the AVGC-XR sector, alongside dedicated funding for creative technologies and gaming infrastructure, are expected to further strengthen India's position as a global development hub.

The report also notes growing opportunities in adjacent sectors such as Web3 gaming, microdramas and gamified consumer applications, which are increasingly borrowing mechanics from mobile games to drive engagement and retention.